CHAMPIONS REAL ESTATE EXAM LAW OF AGENCY
QUESTIONS WITH CORRECT VERIFIED SOLUTIONS
LATEST UPDATE A GRADED
This person hires an agent - ANSWER✔✔The Principal
The agent works on behalf of this person - ANSWER✔✔the client (principal)
This type of agency allows for the greatest range of authority - ANSWER✔✔Universal
This is provided to the agent when there is written documentation that the agency relationship
exists. - ANSWER✔✔Express authority
This is the most limited of all the agency relationships - ANSWER✔✔Special agency
This type of agency is created when a 3rd party believes that an agent has authority that has
NOT been granted by a principal - ANSWER✔✔Agency by Estoppel
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This type of agency is created when actions lead another person to assume that one is an agent
(Example- you have a key to neighbors home and show the property) - ANSWER✔✔Ostensible
Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the buyer? -
ANSWER✔✔No one
This establishes a relationship with a broker - ANSWER✔✔The Buyer/Tenant Representation
agreement
This can be written or oral - ANSWER✔✔Disclosure of Representation
These are required to place their own selfish interests behind that of their clients. -
ANSWER✔✔Fiduciaries
A licensee isn't required to provide the IABS when... - ANSWER✔✔the licensee meets with a
party that is already represented
A broker is obligated to treat who honestly? - ANSWER✔✔client, customer, and agents
Broker must have written consent to act as... - ANSWER✔✔an intermediary
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IABS form is the property of... - ANSWER✔✔TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent
Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent
Sue's buyer wants to purchase Agent Bill's listing
In the above transaction, Broker Bob will: - ANSWER✔✔Remain neutral and refrain from
providing advice and opinion to either party
The IABS should contain - ANSWER✔✔How the broker will be compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer that wants to
purchase one of his listings. The process that Broker Steve must use is: -
ANSWER✔✔Intermediary without appointments
A fiduciary relationship is based on - ANSWER✔✔trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to not enter into
an
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agency relationship with City Realty.
In the above transaction, who is representing the buyer? - ANSWER✔✔No body because the
buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to not enter into
an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - ANSWER✔✔The seller, because City
Realty is a subagent of ABC Realty in this transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to not enter into
an
agency relationship with City Realty.
What type of transaction is this? - ANSWER✔✔cooperative (co-op)
An exemption to using the Information About Brokerage Services form is: - ANSWER✔✔a lease
for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing the client through a
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